Reima’s revenue in 2021 recovered to a growth path in all markets, leaps forward in several sustainability areas

Reima Group’s revenue in 2021 exceeded pre-pandemic levels despite the second operating year in a row impacted by COVID-19. Growth was steady in all markets, with a particularly strong result in North America. Reima’s sustainability work is progressing according to plan and in 2022 already 80% of Reima apparel contain sustainable materials. A comprehensive carbon accounting project enabled Reima to sign the Science Based Targets initiative, through which we commit to lowering out carbon footprint in accordance with the Paris Climate Agreement.

Reima Group’s revenue grew in 2021 in all geographical areas and in all sales channels. The Group’s revenue was 147 million Euros (2020: 122 mil. Euros), growing 20% year on year. The adjusted EBITDA was 14% (2020: 11%) and reported EBITDA 10% (2020: 9%). The Group’s earnings improved due to improved gross margin, despite the negative effects of higher logistical costs caused by the COVID-19 pandemic.

In 2021, Reima focused on international growth and especially on developing digital channels in international markets. 87% of sales were from outside of Finland. Sales grew most strongly in North America where revenue grew by 111%. The share of direct-to-consumer sales grew to 37% of revenue, comprising Reima’s own digital and retail stores and franchise stores. Already 58% of revenue came from digital sales channels, through own ecommerce stores, marketplaces, and third-party e-tailers.

The war in Ukraine is affecting Reima’s operations in both Ukraine and Russia. Reima’s own stores in Russia, both ecommerce and retail, have been closed since early March, and all deliveries to Russia have been halted until further notice. Reima’s franchise stores in Ukraine partly are closed due to the acute conflict. Consequently, Reima’s revenue is expected to decline this year. Reima condemns the attack on Ukraine and we have donated over 15,000 pieces of baby essentials and children’s clothing for the benefit of Ukrainian children.

Sustainability focus on climate action and materials

In 2021, Reima conducted a carbon accounting analysis, for the first time covering the whole value chain of our products. The analysis followed the world’s best-known emissions calculation standard, the Greenhouse Gas (GHG) Protocol. Following the project, Reima signed the Science Based Targets initiative as the first Finnish clothing company, committing to reduce our GHG emissions in line with the Paris Climate Agreement. Reima’s emissions reduction targets will be published later this year.

In 2022, 80 % of Reima branded apparel are made with more sustainable materials, for example recycled polyester and organic cotton. In 2021 collections this figure was 43%. Although more sustainable materials cost a bit more than traditional ones, their environmental footprint is smaller with regards to e.g. climate emissions and water use. Additionally, raw material certifications improve the traceability of materials.

Our other 2021 sustainability achievements include the launch of secondhand service Reima Rescue, increasing our supply chain transparency by publishing our material and trimmings supplier list, and compensating our own operating emissions by planting 1,100 saplings in Lempäälä, Finland.

You can read more about Reima’s sustainability work and 2021 events in our Corporate Responsibility Report published today.

Reima is a globally leading brand in kids’ activewear, known for award-winning innovations and high-quality products. Reima provides a year-round, tip-to-toe wardrobe for active children from 0 to 12 years of age. In addition to apparel, Reima offers a wide range of footwear, accessories and solutions for kids and their parents. Reima employs almost 500 people in seven countries.

The figures presented in this press release are in accordance with Reima Group’s IFRS Financial Statements for the financial year 1/1 – 31/12/2021. The Group’s parent company is Reima Group Holding Oy, which owns Reima Group Oy and its subsidiary Reima Europe Oy.

Reima's Corporate Responsibility Report 2021